The trap

A company can grow quickly, reduce stock coverage and still hold the same or even more inventory in euros. That is not a contradiction. It means the denominator changed.

A better question

Instead of asking only “did inventory fall?”, ask how much inventory the new sales level would have required under the old coverage model, and how much is actually required now.

What this changes

The management conversation moves from absolute stock to structural working-capital efficiency. In one real transformation context, business growth was roughly 40% while stock coverage fell by more than 20% — exactly the kind of case where the ratio tells more than the headline euro value.

The operating lesson

Inventory reduction rarely comes from one action. It comes from planning rules, segmentation, safety stock, MOQ/MRP logic, redistribution, obsolescence governance and better decisions working together.

Instead of asking only “did inventory fall?”, ask how much inventory the new sales level would have required under the old coverage model, and how much is actually required now.

← All InsightsContact →